PRINTABLE FOR KIDS

XII (12) HSC

XI (11) FYJC
X (10) SSC

### METHOD OF MEASURING NATIONAL INCOME?

Meaning: -National income is generally defined from three angles viz. From the point of view of production, distribution and disposition. This is because National Income is always viewed at National Income = National product = National Dividend = National Expenditure i.e NI=NP=ND=NE. As there are three views of National Income accordingly, there are three methods of estimating National Income. They are.
a)      Total Output (Production Method): - (also known as Value Added Method/Inventory Method)
b)     Total Income Method: - (also known as Dividend Method/Factor Cost Method)
c)      Total Expenditure Method: - (also known as Aggregate Outlay method)

1.      Total (aggregates) Output (Production Method): -The national income is calculated on the basis of the gross value of the final production of goods and services manufactured in various sectors. i.e., primary, secondary, and tertiary, during a given period of time.
·         The primary sector is further divided in sub-sectors like agriculture, forestry, fishing, etc.
·         The secondary sector is sub-divided into manufacturing, construction, gas, electricity, etc.
·         The tertiary sector is further divided into banking, transport, trade, communication, hotels, etc.
The national income is calculated as follows:-
ü  The value of all final goods and services produced in different sectors of the economy during a year estimated at market price.
ü  (plus)The Gross Value of all Capital goods i.e. Gross Investment in the economy during a year.
ü  (plus) The Value of services rendered by the government which is measured in terms of government expenditure on purchase of various gods and services.
ü  (plus)Net Income from Exports i.e., the difference between Exports (X) and Imports (M). This may be positive or negative.
ü  (plus) Net foreign Income (NFI), which is equal to (X) – (M) + (R – P). This may be positive or negative.
ü  (minus) Depreciation or Replacement Allowances or capital consumption in the country during a year.
ü  (minus) Indirect taxes (INT) collected by the government during a year.
ü  (Plus) value of substitutes given to consumers and producers during the year.

2.      Total Income Method: -Whenever goods and services are produced in the economy, income is also generated and distributed among the factor of production. Different factors of production are paid for their productive services rendered to an organisation, thus labour gets wages, land gets rent capital gets interest and entrepreneur gets profits. The various income that included in this method are:
ü  Wages/salaries to employees.
ü  Rent of Land.
ü  Interest for capital used.
ü  Profits to entrepreneur.

3.      Total Expenditure Method: -The various sectors-the house holds sector, the business sector and the government sector either spend their incomes on consumer goods and services or save a part of their income or we can say that they spend a part of their incomes on non-consumption goods. These expenditure are grouped as: -
ü  Private Consumption
ü  Private Investment
ü  Public Consumption
ü  Public Investment.

National income = Private Consumption and Investment + Public (government) Consumption and Investment.

## PDF FILE TO YOUR EMAIL IMMEDIATELY PURCHASE NOTES & PAPER SOLUTION. @ Rs. 50/- each (GST extra)

SUBJECTS

HINDI ENTIRE PAPER SOLUTION

MARATHI PAPER SOLUTION
SSC MATHS I PAPER SOLUTION
SSC MATHS II PAPER SOLUTION
SSC SCIENCE I PAPER SOLUTION
SSC SCIENCE II PAPER SOLUTION
SSC ENGLISH PAPER SOLUTION
SSC & HSC ENGLISH WRITING SKILL
HSC ACCOUNTS NOTES
HSC OCM NOTES
HSC ECONOMICS NOTES
HSC SECRETARIAL PRACTICE NOTES

2019 Board Paper Solution

HSC ENGLISH SET A 2019 21st February, 2019

HSC ENGLISH SET B 2019 21st February, 2019

HSC ENGLISH SET C 2019 21st February, 2019

HSC ENGLISH SET D 2019 21st February, 2019

SECRETARIAL PRACTICE (S.P) 2019 25th February, 2019

HSC XII PHYSICS 2019 25th February, 2019

CHEMISTRY XII HSC SOLUTION 27th, February, 2019

OCM PAPER SOLUTION 2019 27th, February, 2019

HSC MATHS PAPER SOLUTION COMMERCE, 2nd March, 2019

HSC MATHS PAPER SOLUTION SCIENCE 2nd, March, 2019

SSC ENGLISH STD 10 5TH MARCH, 2019.

HSC XII ACCOUNTS 2019 6th March, 2019

HSC XII BIOLOGY 2019 6TH March, 2019

HSC XII ECONOMICS 9Th March 2019

SSC Maths I March 2019 Solution 10th Standard11th, March, 2019

SSC MATHS II MARCH 2019 SOLUTION 10TH STD.13th March, 2019

SSC SCIENCE I MARCH 2019 SOLUTION 10TH STD. 15th March, 2019.

SSC SCIENCE II MARCH 2019 SOLUTION 10TH STD. 18th March, 2019.

SSC SOCIAL SCIENCE I MARCH 2019 SOLUTION20th March, 2019

SSC SOCIAL SCIENCE II MARCH 2019 SOLUTION, 22nd March, 2019

XII CBSE - BOARD - MARCH - 2019 ENGLISH - QP + SOLUTIONS, 2nd March, 2019

HSC Maharashtra Board Papers 2020

(Std 12th English Medium)

HSC ECONOMICS MARCH 2020

HSC OCM MARCH 2020

HSC ACCOUNTS MARCH 2020

HSC S.P. MARCH 2020

HSC ENGLISH MARCH 2020

HSC HINDI MARCH 2020

HSC MARATHI MARCH 2020

HSC MATHS MARCH 2020

SSC Maharashtra Board Papers 2020

(Std 10th English Medium)

English MARCH 2020

HindI MARCH 2020

Hindi (Composite) MARCH 2020

Marathi MARCH 2020

Mathematics (Paper 1) MARCH 2020

Mathematics (Paper 2) MARCH 2020

Sanskrit MARCH 2020

Important-formula

THANKS